When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

Finding Sub-contractors

According to the Draft Preferential Procurement Regulations, 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME’s. These categories are:

  • Black female owned EME’s or QSE’s;
  • Black youth owned EME’s or QSE’s;
  • Black owned EME’s or QSE’s.

Once the new Regulations are gazetted there businesses will need to find sub-contractors to fill this requirement.

Sub-contractors versus Consortiums and Joint Ventures

Tenders and subcontracting

Did you know tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so common in South Africa that there are specific rules regulating subcontracting in executing tenders especially Government tenders.

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Title Closing Date Tender No.
Unometer intra abdominal pressure device Ref 158100110190 x 100 units 2017-08-30 11:00 134/ 08/ 17
Double oxygen flow meters x 95 (specification attached) 2017-08-30 11:00 136/ 08/ 17
Spiral Extension set for anaesthetic use, micobore +-3 m, manufactured from medical grade Plastic & kink resistant micro-bore tubing x 1000 units. 2017-08-30 11:00 132/ 08/ 17
Disposable cuscos Large x 5000 Medium x 3000 Small x 2000 2017-08-30 11:00 95/ 07/ 17
Surgical gowns disposable reinforced X -Large x 8000 units. (Periodic Contract for 04 months). 2000 units to be delivered per month. 2017-08-30 11:00 119/ 08/ 17
Gowns surgical sterile reinforced - Large x 8000 units. (Periodic Contract for 04 months). 2000 units to be delivered per month. 2017-08-30 11:00 108/ 07/ 17
Half day infusor 5ml/h portable elastometric infusion system sterile x 120 units 2017-08-30 11:00 99/ 06/ 16
Skin graft carriers 3:1 dermacarriers (box of 20) x 60 boxes 2017-08-30 11:00 07/ 04/ 17
6-0 Prolene (0.7 metric) 30” (75cm) polypropylene suture blue monofilament sterile non absorbable surgical suture -4 strands per packet x 40 units. (This item is used in arterial surgery to repair tiny structures). 2017-08-30 11:00 131/ 08/ 17
Percutaneous endoscopic gastrostomy standard P.E.G.Kit 20F (67mm) for single use - sterile with contents x 20 units (This item is used in endoscopic surgery for gastrostomies). 2017-08-30 11:00 133/ 08/ 17
Skin graft carriers 1,5 : 1 dermacarriers (box of 20) x 60 boxes 2017-08-30 11:00 06/ 04/ 17
Dressing transparent adhesive film 56cm x 84m (box of 10) x 480 boxes. (Periodic Contract for 12 months) 40 boxes to be delivered per month 2017-08-30 11:00 40/ 05/ 17
2 Boxes, Advance DSP tip curved scissors 23Ga, 2 Boxes, Advance DSP tip ILM forceps 23Ga, 2 Boxes, Advance DSP tip endgrasping forceps 23Ga, 2 Boxes, Advance DSP tip MPC vertical scissors 23GG 2017-08-28 11:00 ZNQ: 492/ 17/ 18
Each box, Hydrofiber dressing with silver size 20 x30cm (Box/5) 2017-08-28 11:00 ZNQ: 490/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 2cm- 2mm, 2cm- 3mm, 3cm- 2mm, 3cm-3mm. 2017-08-28 11:00 ZNQ: 498/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 1cm- 2mm, 1cm- 3mm, 5cm-5mm, 20cm- 10mm, 20cm- 20mm 2017-08-28 11:00 ZNQ: 496/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 10cm- -10mm, 10cm-12mm, 10cm-15mm, 10cm- 5mm, 10cm-8mm 2017-08-28 11:00 ZNQ: 495/ 17/ 18
Each, Temporary hymodialisis double lumen catheter kit size 11.5F 19.5cm 2017-08-28 11:00 ZNQ: 484/ 17/ 18
Each, Clear suction liner, 2L, Blue/White/ LIGHT Green with shutoff valve 2017-08-28 11:00 ZNQ: 480/ 17/ 18
10 Pack, Adult cardiopulmonary by pass tubing pack 2017-08-28 11:00 ZNQ: 382/ 17/ 18

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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